On 9 March 2023, the Finance Ministry of Lithonia declared a proposal for the introduction of a temporary solidarity contribution on the banking sector. According to the proposal the key features of the proposal include:
- The temporary solidarity contribution is expected to be limited to institutions with Lithuanian residents’ deposits and other funds totaling at least EUR 400 million as of December 31, 2022. i.e.1 % of the total residents’ deposits. In the absence of excess net interest income — the contribution is not applicable.
- During the years 2023 and 2024, the excess net interest income will be subject to a 60 percent rate for the contribution levy.
- Apart from the regular 15 percent corporate income tax rate, the contribution will also be applicable.
- The excess net interest income will be determined by calculating the difference between the net interest income (interest income minus interest expenses) in 2023 and 2024, and 50 percent of the average net interest income from the previous four years.
